Best Investment Stock Paying Dividends | Comprehensive Guide to Arab Stocks 2025

Investment Opportunities in Arab Markets

The Arab stock markets, whether Egyptian, Emirati, or Saudi, are experiencing significant development, opening broad horizons for investors seeking to diversify their portfolios. These markets possess unique characteristics; offering exceptional investment opportunities not easily found in global markets. Investors benefit from the region’s diverse economy, which positively impacts the quality of available investment options.

The UAE markets, in particular, are witnessing extraordinary growth, supported by strong infrastructure and government policies favoring the private sector. Additionally, there are stocks that distribute excellent periodic dividends, and companies with attractive valuations compared to their historical performance.

Recent years have seen increasing stability in the region, creating a better investment climate. Arab companies are becoming more stable and financially solid, enhancing confidence in long-term investments. This stability reduces investment risks and opens the door to consistent and reliable returns.

Best Dividend Stocks in the Gulf Region and Arab World

Dividend Stocks in the Saudi Stock Exchange

The Saudi Stock Exchange is classified as the largest and most vibrant in the Middle East, attracting significant international attention due to its diverse investment tools and the kingdom’s continuous economic growth.

Dividend Stocks in the Abu Dhabi Market

Dominated by the banking, real estate, and energy sectors, these sectors offer the best opportunities for periodic distributions:

Dividend Stocks in the Egyptian Stock Exchange

The Egyptian market is characterized by a unique mix of frequent fluctuations and exciting investment opportunities. Egyptian companies can generate foreign currency income with relatively low operating costs, making them attractive to investors:

Best Stocks to Invest in 2025

1- First Abu Dhabi Bank (FAB)

This bank is considered one of the largest financial institutions in the UAE, providing services to clients in the UAE, Arab countries, Europe, and America. Its activities include:

• Investment and commercial banking
• Retail banking and private banking
• Islamic finance and asset management

The first half of 2025 showed exceptional strength: net profit increased by 26% to AED 10.63 billion, with pre-tax profit improving by 29%. Operating income reached AED 18.31 billion, assets grew by 14%, loans increased by 11%, and customer deposits rose by 6%.

The bank has a distinguished record of dividends at an average of 4.56% with a growth of 5.63% distributed annually, making it a preferred choice for those seeking the best dividend-paying investment stock.

Risks: Fluctuations in interest rates may affect the bank’s future profit margins.

Technical Analysis: Indicators suggest buying opportunities, as the stock trades above the 200-day moving average and below the 50-day, with positive signals from the Relative Strength Index.

2- Al Rajhi Bank (1120)

This bank is one of the oldest and most prominent Saudi banks, specializing in Islamic banking and digital services. Founded in 1957 and headquartered in Riyadh.

Results for the first half of 2025 showed strong growth: net income after Zakat increased by 32.5% to SAR 12.1 billion, with operational revenues growing by 26.5%. Profitability reached 23.5%, and the current dividend yield is approximately 1.98%.

Future Opportunities: Growth in financing portfolios, especially in real estate (+15%) and trade finance (+37.9%).

Risks: Slight increase in risk costs (0.31%) and a rise in impairment charges (28.4%) require close credit quality monitoring.

Technical Analysis: Strong consensus among indicators on an upward trend, with the stock trading above all moving averages. However, attention should be paid to the rising ATR indicator, indicating high price volatility.

3- Commercial International Bank (COMI)

Ranked first among private banks in Egypt, offering a variety of banking services for individuals and corporations, including accounts, loans, digital services, and trade finance.

In Q1 2025, the bank achieved a net income of EGP 16.6 billion, a 39% annual growth, with total revenues of EGP 27 billion.

Advantages: Strong growth in revenues and profits, with diversified income sources, making it a solid investment.

Risks: Exchange rate fluctuations of the Egyptian pound against the dollar and inflationary pressures pose major challenges.

Technical Analysis: Relative neutrality due to conflicting indicators, with the stock fluctuating between different moving averages.

4- Aramco (2222)

Regarded as the largest global oil company, involved in exploration, production, refining, and export, with expanding investments in renewable energy. Its role extends beyond production to include international marketing, trading, and maritime transportation.

Announced results for the first half of 2025: net income of SAR 190 billion and free cash flow of SAR 128 billion, with dividends of SAR 79.29 billion paid quarterly.

Future Opportunities: Expansion into new projects (Dammam, Berri, Marjan, Zuluf) and international expansions in Chile and Pakistan.

Risks: Fluctuations in global oil prices, high operational costs, and dependence on global demand.

Technical Analysis: Most indicators point to buying opportunities, with the stock trading above key moving averages and positive signals from RSI and MACD.

5- ADCB (ADCB)

A major financial institution in the UAE, established in 1985, providing services to individuals and companies locally and internationally. Its activities include comprehensive banking services and real estate management.

In the first half of 2025, the bank achieved a net profit of AED 5.014 billion, with an 18% increase in pre-tax profit, and the non-performing loan ratio improved to 2.02%.

Advantages: Exceptional operational efficiency with a cost ratio of 26.4% (the lowest in history), and a 36% diversification of income from non-interest sources.

Risks: An increase in the tax rate from 9% to 15% could impact future profits.

The bank has a strong record of dividends at an average of 4% with a growth of 5.36% distributed annually.

Technical Analysis: Currently trading at AED 14.52, below the 50-day average and above the 200-day, with conflicting signals from different momentum indicators.

6- Saudi Telecom Company (STC 7010)

Leading the telecommunications sector in Saudi Arabia, providing mobile, fixed-line, data, digital solutions, and infrastructure services.

Achieved a net profit growth of 13.4% in the first half of 2025, with a profit margin of 35%, and revenue growth of 2%.

Dividend yield reached 9.2% paid quarterly, providing steady income for investors.

Advantages: Pioneering infrastructure development and 5G deployment, with a shift towards financial services via STC Bank app, which has attracted 3 million users.

Risks: Competitive pressures and ongoing investments in modern technologies.

Technical Analysis: Most indicators suggest a sell recommendation, with a clear downward trend from short-term averages.

7- Emaar Properties (EMAAR)

One of the most prominent real estate developers in the UAE, founded in 1997 and headquartered in Dubai. Operating in three sectors:

• Development and sale of residential units
• Development and management of shopping malls
• Hotel and serviced apartment management

Financial results for the first half of 2025 showed exceptional performance: real estate sales increased by 46% to AED 46 billion, revenues reached AED 19 billion with a 38% increase, and net income grew by 34% to AED 10.4 billion.

Dividend yield reaches 7.35% with 100% growth.

Advantages: Rising unsold real estate sales index reflects the company’s strength and promising future revenue prospects.

Risks: Close linkage to Dubai’s real estate market exposes it to market fluctuations.

Technical Analysis: The stock trades above the 200-day moving average and below the 50-day, with buy signals from RSI and MACD.

8- Elm Company (7203)

A leading Saudi tech company, specializing in digital transformation, consulting, IT services, and professional services.

Achieved a net profit of SAR 1.08 billion, a 30.6% increase in the first half of 2025, with revenue growth of 21.02% reaching SAR 4.12 billion.

Earnings per share reached SAR 13.95 with announced dividends.

Advantages: Strong revenue growth, diversified income sources, and attractive dividend policy.

Risks: Rising operating expenses and reliance on government contracts that may be affected by austerity measures.

Technical Analysis: Strong buy signals with the stock trading above short-term averages, with clear momentum indicator consensus.

9- Almarai (2280)

One of the largest Saudi food companies, specializing in dairy, juices, poultry, and baked goods with integrated supply chains.

Reported a net profit of SAR 1.37 billion, up 5% in the first half of 2025, with revenues of SAR 11.05 billion, a 4.2% increase.

Earnings per share reached SAR 1.38.

Advantages: Strong demand for its products, ongoing diversification, and solid financial position.

Risks: Rising operating costs, currency fluctuations in foreign markets, and intense competition.

Technical Analysis: Neutral recommendation with mixed signals; the stock currently lacks a clear trend.

10- Egyptian Telecommunications Company (ETEL)

Main provider of telecom services in Egypt, holding the largest market share.

Achieved strong performance in the first half of 2025: net profit increased by 61% to EGP 10.5 billion, with operational revenues of EGP 50 billion.

Advantages: Dominance in the telecom sector and primary ownership of infrastructure.

Risks: Rising financing costs (6.6 billion EGP) could pressure future profits.

Technical Analysis: Strong buy recommendation from most indicators, but attention should be paid to the rising ATR, indicating high volatility.

Investment Strategies

Short-term Investment

Aimed at quick gains over short periods (less than one year). Relies on precise technical analysis to identify entry and exit points effectively. Requires continuous monitoring of prices and technical indicators.

Advantages of this approach:

• Achieving rapid returns
• Flexibility in managing positions
• Benefiting from short-term volatility

Challenges:

• High time and monitoring requirements
• Higher relative risks
• Frequent trading costs

Long-term Investment

The reliable path to wealth building, based on buying financially strong stocks and holding them for many years, possibly decades.

Long-term investment strategies:

1. Buy and Hold: Select strong stocks and hold regardless of daily fluctuations. Requires thorough research and confirmation of fundamental quality.

2. Dollar Cost Averaging (DCA): Gradually build a position by regularly purchasing (monthly or quarterly), reducing the average purchase price and mitigating price volatility effects.

Basic Tips for Successful Investing

1- Invest in what you understand

Choose companies whose activities you can comprehend and analyze news about realistically. This helps in predicting future performance more accurately.

2- Deepen financial analysis

Learn to read financial statements and understand key indicators (P/E ratio, return on assets, debt ratio). This enables you to determine the true value of a stock.

3- Use technical analysis

Especially in short-term investing, learn indicators like moving averages, RSI, and MACD to identify optimal entry points.

4- Stick to your plan

Create a clear investment plan initially, set your goals, then review periodically and adhere to it. Discipline is the main factor for success.

5- Manage risks

Don’t put all your capital into one stock. Diversify your portfolio across different sectors and companies of varying sizes and risks.

6- Continuous learning

Markets are constantly evolving. Stay updated with market news, company developments, and economic trends.

Summary

Arab markets present a real opportunity for investors aiming to build strong wealth. Dividend stocks provide steady income, while growth stocks offer potential capital appreciation.

The key is choosing a strategy that aligns with your goals and sticking to it. Whether you opt for short-term or long-term investing, base your decisions on thorough analysis, not speculation.

The best dividend-paying stock is not necessarily the best choice for every investor. Select what suits your financial situation and investment objectives. Start small, learn from experience, and focus on building financial knowledge. True success comes with patience and adherence to sound scientific principles.